Friday’s top losers; Meta Desc: Bed Bath and Beyond, Maxeon Technologies & Wayfair
Bed Bath and Beyond suppliers halt shipments
Bed Bath & Beyond inc (NASDAQ: BBBY) lost 40.54% after some supplies indicated that they were halting or restricting shipments after the company fell behind on payments, complicating the home-goods retailer’s scramble for liquidity. In addition, according to the persons who requested to remain anonymous because they were discussing confidential information, a number of companies that offer short-term financing or credit insurance to vendors have canceled their insurance of Bed Bath & Beyond.
This week, shares of Bed Bath & Beyond lost half of their value as a result of influential investor Ryan Cohen selling his holdings in the business. The shop has already stated that it is having trouble managing its cash and inventories, and it appears that ordering errors have left it with an excess of merchandise that will need to be marked down. CEO Mark Tritton resigned in June, and board member Sue Gove took over in an interim capacity.
Wayfair lays off 870 workers.
Wayfair Inc (NYSE: W) lost 20.09% after announcing it would lay off around 870 workers. In an SEC filing, the online furniture and home décor company indicated that the layoff affected around 5% of its workforce and 10% of its corporate team. in the company’s Q2 results released on August 4, the company announced a decrease in orders per client, number of active clients and order deliveries as well as the decrease in orders delivered through Wayfair’s mobile application. In addition, the company reported almost 155 drops in net revenue relative to its 2021 earnings.
CEO Niraj Shah said that in the last few years, the company has significantly grown to keep pace with growth in the eCommerce sector. During the pandemic, there were tailwinds that accelerated e-commerce adoption, and they hired a strong team to support that. However, Shah said this year, the growth has been underwhelming, and the team they have is too big.
Maxeon posts mixed Q2 results
Maxeon Solar Technologies Ltd (NASDAQ: MAXN) lost 18.26% after reporting uninspiringQ2 2022 earnings. The company reported revenue of $238.1 million in Q2 2022, beating estimates of $221.4 million. However, Maxeon reported a loss per share of $2.15, missing on analysts’ loss per share estimate of $1.6. Management had predicted a gross loss of between $15 million and $25 million for Q2 2022 when the company released Q1 2022 earnings report. Nevertheless, Maxeon posted a gross loss of $39.3 million, falling short of this projection.
Management projects revenues of $270 million to $290 million for the coming year, which is a more conservative forecast than the $311 million in revenue experts anticipate the company will generate. Investors are more interested in Maxon’s gross loss, which was smaller than what the company had anticipated, and the exceptionally low loss per share, despite the company’s success in the previous quarter in exceeding analysts’ projections and growing revenue by 35% year over yea